§ 6A-9-622. Effect of acceptance of collateral.
(a) Effect of acceptance. A secured party's acceptance of collateral in full or partial satisfaction of the obligation it secures:
(1) Discharges the obligation to the extent consented to by the debtor;
(2) Transfers to the secured party all of a debtor's rights in the collateral;
(3) Discharges the security interest or agricultural lien that is the subject of the debtor's consent and any subordinate security interest or other subordinate lien; and
(4) Terminates any other subordinate interest.
(b) Discharge of subordinate interest notwithstanding noncompliance.
A subordinate interest is discharged or terminated under subsection (a), even if the secured party fails to comply with this chapter.
(P.L. 2000, ch. 182, § 6; P.L. 2000, ch. 420, § 6.)